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Taxes, Paypal and Outsourcing

by authorfriendly
6 replies
Can someone tell me the best way to pay the overseas outsourcer, if you are using Paypal? Also I plan to hire a VA from the Philipines, what considerations do I need to give to taxes (in USA and the Philipines)?
#outsourcing #paypal #taxes
  • Profile picture of the author Warrior Roy
    If you go through oDesk for outsourcing, they handle the payments, and you can pay with Paypal. And you don't have to pay until you are happy with the job.

    If I pay for services, I deduct them from my taxes; but I have a CPA that prepares my taxes so I don't know any of the specifics.
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    • Profile picture of the author authorfriendly
      Guess I need to be more specific. I am hiring two VA's directly, individual contractors and so I need to know what if any forms I would need to fill out for their(the Phillipine's) government, comparable to the 1099's that are filled out in the USA.

      My other main question is just about Paypal. Should I try to get the VA's to bill me as a provider of services? I doubt if I should be using the family and friends transfer option, but just not sure what's best overall, easiest, cheapest, etc.

      Finally I need to know what to do when I file my taxes here.
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      • Profile picture of the author JOSourcing
        Banned
        Originally Posted by authorfriendly View Post

        Guess I need to be more specific. I am hiring two VA's directly, individual contractors and so I need to know what if any forms I would need to fill out for their(the Phillipine's) government, comparable to the 1099's that are filled out in the USA.

        My other main question is just about Paypal. Should I try to get the VA's to bill me as a provider of services? I doubt if I should be using the family and friends transfer option, but just not sure what's best overall, easiest, cheapest, etc.

        Finally I need to know what to do when I file my taxes here.
        This website can answer your questions better than anyone here, I'm sure: Paying Independent Contractors
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  • Profile picture of the author JOSourcing
    Banned
    As an outsourcer, you don't pay any taxes for U.S. contractors. Paying taxes (here) is the contractor's responsibility. I have no idea what's required in the Philippines, so perhaps someone else can answer that part. The general assumption is no taxes, nowhere.
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  • Profile picture of the author myeanne
    Hi authorfriendly,

    We are a staff leasing company based in Manila, Philippines. All of our employees are in-house working for various clients and projects from time to time. We are in-charged at paying our staff's monthly salary, social security, taxes, benefits
    etc. You just pay a monthly flat rate, no hidden charges, and you can
    choose between contract or no contract service arrangement.

    I'll be more than happy to assist you.
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    Staff Leasing
    We Lease Offshore Employees
    Hire inexpensive labor from the Philippines!
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  • Profile picture of the author Istvan Horvath
    Maybe some clarification is due...

    If you are in one country and the "worker" is in another country - you do NOT hire them, in terms of employer/employee relationship. They are just contractors. I guess this was the thing that confused you...

    While I am in Canada, you can NOT hire me as an employee, unless your business has a registered presence here in Canada; i.e. a business entity registered here.

    If you want me to perform some tasks for you - I can be a contractor for you: I am telling MY price and you accept it, if you want and you don't have to worry what kind of taxes I pay (or how much).
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